This bill establishes new regulations for lenders providing loans to cannabis businesses in Minnesota, codified under a new section in Minnesota Statutes, chapter 342. It defines key terms such as "borrower," "lender," and "loan," and specifies that lenders must not include banks or credit unions regulated by federal or state authorities. The bill mandates that lenders must comply with fair lending requirements, which include providing borrowers with a detailed itemized list of disclosures at least five days before executing a loan contract. These disclosures must cover the loan's interest rate, finance charges, payment schedule, total amount financed, and any balloon payment details.

Additionally, the bill prohibits false advertisements or solicitations related to loans and establishes that any loan made in violation of these regulations is void, relieving the borrower of any repayment obligations. The effective date for these provisions is set for August 1, 2025, applying to loans offered or made on or after that date. Overall, the bill aims to ensure transparency and fairness in lending practices for cannabis businesses in Minnesota.